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Hongkong Electric

Hutchison Whampoa is a Fortune 500 company and one of Hong Kong’s largest listed companies. It is 49.97 per cent owned by the Cheung Kong Group, a property company. Hutchison’s origins date back to two companies founded in the 19th century – Hong Kong and Whampoa Dock, established in 1863 by British merchant John Duflon Hutchison, and Hutchison International in 1877. In 1977, Hutchison became Hutchison Whampoa Ltd. Its operations include ports, with operations across Europe, the Americas, Asia, the Middle East and Africa, property and hotels, retailing through AS Watson & Co, PARKnSHOP supermarkets, Fortress electrical appliance stores, telecommunications through Hutchison Telecommunications International Ltd. It is also involved in infrastructure through its infrastructure arm, Cheung Kong Infrastructure, and has an interest in Hongkong Electric Holdings (HEH), the sole electricity supplier to Hong Kong Island and Lamma Island. Hutchison is also a major shareholder of Husky Energy, one of Canada’s largest energy and energy related companies. It is headed by Li Ka-shing, Asia’s wealthiest man, who has been nicknamed “Superman” because of his investment prowess.

It is not only government seeking public opinion. HK Electric has been e-mailing customers recently, asking them to speak out against mainland power, and even China Light, careful with its words, says the Hong Kong-only option "provides a more certain result".

Power Assets, the international utility firm controlled by Li Ka-shing, says an investment of up to HK$10 billion in its HK Electric Investments spin-off by State Grid of China opens the door to future co-operation in deals outside the city.

Government-owned State Grid Corp of China is coming in as the biggest cornerstone investor in Li Ka-shing-backed HK Electric Investments’ up to US$5.7 billion Hong Kong initial public offering (IPO), according to people familiar with the matter .

Power Assets, an international utilities firm controlled by Asia's richest man, Li Ka-shing, plans to spin off its Hong Kong electricity unit at a valuation of HK$48 billion to HK$63.4 billion via the establishment of a trust firm that will offer potential investors a 5.5 per cent to 7.3 per cent annual return in the first year.

Power Assets is nearing its HK$40 billion spin-off of Hongkong Electric, which will hold all its power assets in the city. The market knows the initial public offering is near because Hongkong Electric is close to finalising a HK$37.5 billion club loan, which is essential for leveraging the asset to create cash to pay to Power Assets, which is 38.87 per cent owned by Cheung Kong Infrastructure.

Loan proceeds would be used to fund the acquisition of the entire stake of Hongkong Electric by the spin-off unit, HK Electric Investments, the people said. Price talk for the facility was at an all-in rate, which included interest and fees, of about 110 basis points over the Hong Kong interbank offered rate for minimum pledges of HK$3 billion, they said.

The report of the inquiry into the Lamma ferry tragedy calls for congratulations but also misgivings. Congratulations because the report - 186 pages plus 82 pages of appendices - is an admirably clear summary of an inquiry which had 113 witnesses and was provided with a mass of expert evidence.

Hongkong Electric accepted the brand new Lamma IV from a well-known Hong Kong shipbuilder even though a supervisor noticed it was missing a watertight bulkhead, the commission of inquiry was told on Tuesday morning.

Tang Wan-on, of Hongkong Electric, was involved in the ship inspection when it was handed over to the company by Cheoy Lee Shipyards, in 1996.

Friends of the Earth successfully mobilised the public to save 52 million kilowatt-hours (kWh) in three months in our Power Smart contest while Hongkong Electric has failed to save as little as three million kWh.

Secretary for the Environment Wong Kam-sing said that there is not much room for adjustments in the interim review of the Scheme of Control Agreements this year.